The United States Since the Civil WarLingley, Charles Ramsdell
History
The United States Since the Civil War
Lingley, Charles Ramsdell
United States -- History -- 1865-1921
Inevitably the cloud in the West threw its shadow into Congress where
the demand was insistent that the government "do something for silver."
A commission had been appointed in 1876 to study the currency problem
and make recommendations. When the report was made it appeared that the
opinions of the members were so divergent that little was gained from
the investigation. While the commission was deliberating, Richard P.
Bland of Missouri introduced a bill providing for the free and unlimited
coinage of silver. Under its provisions the owner of silver bullion
could present any quantity of his commodity to the government to be
coined under the conditions which controlled the coinage of gold. The
House responded readily to Bland's proposal. In the Senate, under the
leadership of William B. Allison, the free and unlimited feature of the
bill was dropped and a provision adopted limiting the purchase of
bullion to an amount not greater than four million dollars' worth per
month and not less than two million dollars' worth. The bullion so
obtained was to be coined into silver dollars, which were to be legal
tender for all debts public and private. Bland was ready to accept the
compromise because he hoped to be able to increase the use of silver by
subsequent legislation. "If we cannot do that," he said, "I am in favor
of issuing paper money enough to stuff down the bond-holders until they
are sick." The remark was typical of the sectional and class hatreds and
misunderstandings which this debate aroused, and of the maze of
ignorance in which both sides were groping. To the silver faction, their
opponents were "mendacious hirelings" and "Gilded Shylocks." God, in His
infinite wisdom had imbedded silver in the western mountains for a
beneficent purpose. "The country," said one speaker, "is in an agony of
business distress and looks for some relief by a gradual increase of the
currency." On the other hand, the opponents of silver scorned the
"delusion" of a "clipped" coin and the dishonest proposition to make
ninety cents' worth of silver pass as a dollar. The "storm-driven,
buffeted, and scarred" ship of industrial peace, an easterner declared,
"deeply laden with all precious and golden treasure is sighted in the
offing!... shall we put out the lights?... Dare we remove the ship's
helm, leaving her crippled and helpless!"
Sherman believed that this limited amount of silver could be taken into
the currency system without difficulty, but President Hayes thought that
harm would result from making the silver dollar a legal tender when the
market value of the bullion in the coin was not equal in value to that
of the gold dollar. He therefore vetoed the bill on February 28, 1878.
He could not carry Congress with him, however, and the measure was
passed over the veto on the same day.
Public-domain text, read in full here on John Shaqi.
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